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Lodging Fund REIT III Buys Mississippi Hotel Property

Lodging Fund REIT III Inc., a publicly registered non-traded real estate investment trust, has purchased Homewood Suites by Hilton hotel located in Southaven, Mississippi for $20.5 million, excluding closing costs.

Lodging Fund REIT III Inc., a publicly registered non-traded real estate investment trust, has purchased Homewood Suites by Hilton hotel located in Southaven, Mississippi for $20.5 million, excluding closing costs.

Opened in 2017, the 99-room, extended-stay hotel includes 486 square feet of meeting space, a fitness center and an indoor pool. The property is located 15 minutes from the Memphis International Airport and within close proximity to tourist destination Graceland, as well as the area’s retail and entertainment venues.

The REIT funded the purchase with proceeds from its ongoing private offering and a new $13.5 million term loan with Wells Fargo Bank, National Association secured by the property. Vista Host Inc., a third-party management company, will provide property management and hotel operations management services for the Homewood Suites Southaven.

Lodging Fund REIT III was formed in April 2018 to invest in limited-service, select-service and extended stay hotel properties located primarily in “America’s Heartland,” which the company defines as the geographic area from North Dakota to Texas and the Appalachian Mountains to the Rocky Mountains. The REIT raised $46.0 million in investor equity, as of the third quarter of 2019, and launched a $100 million private offering in June 2018. As of September 30, 2019, Lodging Fund REIT III owned a $50.9 million portfolio of four hotel properties with a total of 406 rooms located in four states.

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